Home Forex trading AUTO RECOVERY MANAGER INSTRUCTION – Buying and selling Methods – 21 July...

AUTO RECOVERY MANAGER INSTRUCTION – Buying and selling Methods – 21 July 2022

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  • Auto Recovery Manager MT5:

Advisor   Auto Recovery Manager is a system designed to recover losses on an account. ARM itself will set the variables, but at the same time, the trader himself can change them if necessary. This article will describe how to adjust risk management and test the EA, how ARM works and what to expect from the product in its work.

Expert Advisor testing:

ARM testing can be carried out in the strategy tester only using the “Visualization” mode.

To test the drawdown, select the amount of drawdown that you plan to restore in the “Drawdown percent for start (0-not use)” variable. Next, use the adviser panel to open orders. When the drawdown reaches the one used in the input settings, the EA will exit the sleep mode and start working.

1 The first thing you need to determine with what amount of the deposit to run the adviser. To do this, you need to select the volume that you used on the deposit that you will restore.

2 With auto-trading disabled, start ARM on a new chart with volume equal to the initial volume of your losing window. This is necessary in order to determine what settings the Expert Advisor will offer for recovery at startup.

3 Now open the strategy tester in visualization mode. Choose again the amount of the deposit equal to that which was used on the deposit to be restored.

4 In the ARM input settings, select the amount of drawdown that you currently have in the “Drawdown percent for start (0-not use)” variable. For example, 30 percent. Leave the rest of the variables by default, then the settings that you saw in the description of paragraph 2 will be applied.

5 After applying the input parameters, the adviser will wait for the drawdown specified by you to appear on the deposit. You can now open orders using the panel at the bottom of the screen. Having achieved the drawdown that was specified in the input settings. ARM will get to work. Thus, you can see how actively the adviser restores your losing position. That is, you emulate the situation of the real work of the adviser with your drawdown level.

Please note that for the best visualization of your situation, in the drawdown set tester, it is better to open orders of the same volume as in your real situation.

6 If you are not satisfied with the result with the default settings in the strategy tester, then you can apply a different level of risk management using automatic settings or manually.

Risk Management Adjustment:

The main variables regulating the riskiness of your strategy:

1 Volume Mode – A variable that determines the volume for opening and closing orders. The following options are available for automatic tuning:

  • Low auto volumes risk – low volume for less risk
  • Medium auto volumes risk – medium volume for moderate aggressiveness.
  • High auto volumes risk – high volume for greater aggressiveness and faster recovery of positions.

Open Lots (0-use auto) – Leave the default value of zero when using automatic volumes. For manual setting, enter the value for the volume of the first grid order.

Close Lots (0-use auto) – Leave the default value of zero when using automatic volumes. If using manual tuning, enter the value. The value is measured in lots.

Note!  When using manual setting, the value used in the “Open Lots (0-use auto)” variable must be greater than the volume used in the “Close Lots (0-use auto)” variable.

2 Base Equity for risk modes – This is the amount of the deposit that will be applied by the ARM advisor to the risk level you have chosen.

By default, the value is equal to the deposit amount of 10,000, which means that if you work with a deposit of less than 10,000, then your risks will be less than the ratio of 10,000.

Conversely, if your deposit is larger, then the risks will be increased in accordance with this value.

The smaller the specified amount of the deposit, the faster the risks will increase, as the deposit increases, and the higher they will be in general in relation to the volume of the deposit.

3 Step Mode – Adjustment of distance between averaging orders.

The following automatic modes are available:

  • Open by new signals – each new averaging order will be opened only when a signal of the “Heiken Ashi” indicator arrives on the timeframe on which ARM works. In this case, the EA will work without using a fixed step.
  • Small auto step – a small step, relevant for an aggressive strategy. The smaller the distance between orders, the higher the risk.
  • Medium auto step – medium step, with moderate aggressiveness. The distance between orders will be average.
  • Big auto step – a big step, relevant for conservative strategies. The larger the step, the greater the distance between orders, the number in the grid will be less.

Step (0-use auto) – If using automatic step adjustment, leave the default value of zero. To set it manually, enter a value for the distance between orders.

You can use automatic step adjustment depending on your work strategy. When using automatic pitch tuning, ARM will automatically calculate the “Multiplier to volume” variable.

Multiplier to volume (0-use auto) – adjust how much each subsequent order in the grid will be larger than the previous one.

For example: when using a value of 1.5, if the first averaging order is opened with a volume of 0.2, then the next one will be opened with a volume of 0.3, and another one with a volume of 0.45, and so on. Accounting for multiplying values below the minimum value is used for the calculation.

If using automatic pitch adjustment, leave the default value of zero.

By using these three variables, you can fine-tune the key variables that affect the riskiness of your loss recovery strategy.

Peculiarities:

1 ARM was created specifically to recover losses and not to work independently.

The start of the EA is regulated by the variable “Drawdown percent for start (0-not use)” – Here you can enter the percentage loss value after which ARM will begin to recover the loss.

The loss will be calculated relative to those orders: that are processed by the adviser. That is, if you work with all Magic, then the loss will be calculated from the total volume on the instrument on which the ARM advisor is enabled. If you work with the selected Magic, then the loss percentage is calculated from the specified Magic.

If left at the default value of zero, then ARM will begin to recover the loss from the first unprofitable losing order that is formed.

That is, even if the “Drawdown percent for start (0-not use)” variable is set to “0”, then in any case, in order to open the first order, the ARM Expert Advisor must have already opened some open order with a negative volume.

2 The ARM EA locks unprofitable positions.

The EA will lock the position before starting work to recover losses. When the “Lock position” variable is enabled, the EA will even out your losing position in both directions.

For example, your losing position consists of BUY orders. The ARM Expert Advisor will open a large order (locking) before starting work so that the volume of BUY and SELL orders is equal.

This approach will allow you to keep the drawdown in its current position and prevent it from growing if the market moves in a disadvantageous position.

Locking is performed only once before the start of the process of recovering losses.

If the “Lock position” variable is disabled, then the ARM EA will not lock the position.

This option may be relevant if other advisors work on the same instrument or manual trading is conducted. When using blocking, work on this tool should be disabled.

3 Smart overlap function

Orders can be closed not in whole groups, but in pairs of orders farthest from each other. This is due to the fact that the EA includes a smart overlapping system to close part of the grid more quickly.

The system is connected after opening the third order in the grid. This means that the closure will not occur as a whole grid, but in parts of two orders, the closest and the farthest. Thus, the volume of the grid will be reduced.

In the case when this is possible, the grid can be closed completely at once, but if this is not possible, then the overlapping algorithm will be applied.

Input settings:

volume mode – A variable that determines the volume for opening and closing orders. You can adjust the level of aggressiveness for your strategy. The following options are available for automatic tuning:

Low auto volumes risk – Apply a small volume of opening and closing orders to work at low risks. Relevant for more conservative strategies.

Medium auto volumes risk – Apply the average volume of averaging orders. Relevant when working with moderate aggressiveness.

High auto volumes risk – Apply high volume for averaging orders when dealing with higher riskiness. For a faster recovery of positions.

Open Lots (0-use auto) – You can set the volume for opening averaging orders manually. To do this, enter the value for the volume of the first order of the grid. The value is measured in lots. If using automatic volumes, leave the default value of zero.

Close Lots (0-use auto) – You can set the volume for the part to close from a losing position manually. This is the volume that will be closed from each losing order at a time. If using manual tuning, enter the value. The value is measured in lots. If using automatic volumes, leave the default value of zero.

Step Mode – Variable defining the distance between averaging orders. The step directly affects the aggressiveness of your strategy. You can use automatic step adjustment depending on your work strategy. When using automatic pitch tuning, ARM will automatically calculate the “Multiplier to volume” variable. The following automatic modes are available:

Open by new signals – Apply the option of working based on signals from the built-in trend indicator “Heiken Ashi”. When using this option, each new averaging order will be opened only when the signal of the “Heiken Ashi” indicator arrives on the timeframe on which ARM works. In this case, the EA will work without using a fixed step.

Small auto step – Apply a small step to the distance between averaging orders. Most relevant for an aggressive strategy. The smaller the distance between orders, the more. higher risk, as more orders will be opened.

Medium auto step – Apply an average step between averaging orders. Actual with moderate aggressiveness. The distance between orders will be average.

Big auto step – Apply the largest step for distance between averaging orders. Most relevant for conservative strategies. The larger the step, the greater the distance between orders, the number in the grid will be less.

Step (0-use auto) – You can adjust the distance between averaging orders manually. To do this, enter the value for the distance between orders, measured in points. If using automatic pitch adjustment, leave the default value of zero.

Multiplier to volume (0-use auto) – A variable that determines how much each subsequent order in the grid will be larger than the previous one. Used as a multiplication and measured in lots. If using automatic pitch adjustment, leave the default value of zero.

Max Lots for order (0-not use) – Enter the maximum volume for one averaging order. The volume of open averagers in the grid increases. You can limit this increase in volume to a given parameter. Then, after opening an order of a given volume, the grid will stop multiplying the volume and it will become fixed.

Drawdown percent for start (0-not use) – You can enter the value of the loss in percentage after which ARM will begin work to recover the loss. The loss will be calculated relative to those orders that are processed by the adviser. That is, if you work with all Magic, then the loss will be calculated from the total volume on the instrument on which the ARM advisor is enabled. If you work with the selected Magic, then the loss percentage is calculated from the specified Magic. If left at the default value of zero, then ARM will begin to recover the loss from the first unprofitable losing order that is formed.

Take Profit Points – Specify the Take Profit size for closing orders. The value is measured in points. This TakeProfit value will work to close an entire basket of orders, or to close part of a basket with the overlap system enabled.

Disable other EAs – If you select “TRUE”, you allow the ARM EA to disable all other windows at the time the ARM EA starts. If you want to continue working on other windows, then select the “FALSE” option. Closing of other windows occurs once before the start of the recovery process. That is, in the process of work, you can open other advisers on other windows.

Base Equity for risk modes  – Base factor for risk management calculation. The specified value is the amount of the deposit that will be applied by the AUTO RECOVERY advisor to the risk level you have chosen. The smaller the specified amount of the deposit, the faster the risks will increase, as the deposit increases, and the higher they will be in general in relation to the volume of the deposit.

Recover all MagicNumbers – If you select “TRUE”, you allow the ARM EA to recover losses from all positions on the instrument on which the ARM EA is running. When choosing such a job, it is better to end the job on this tool before the ARM job process is completed. If you select “FALSE”, the EA will recover losses from only one Magic number, which is entered in the “Magic to recover” variable.

Magic to recover – If you want to compensate for the loss of a particular adviser, then enter the value of the Magic number, which is used by the adviser that generated this loss. If it is necessary to recover losses from manual positions, then the Magic number will be equal to “0”.

lock position – You can block the position before starting work on recovering losses. That is, when using the “TRUE” option, the adviser will even out your losing position in both directions. For example, your losing position consists of BUY orders. The ARM Expert Advisor will open a large order (locking) before starting work so that the volume of BUY and SELL orders is equal. If “FALSE” is selected, the ARM EA will not block the position. When using locking, work on this tool should be disabled.

Buy trades – If you select “TRUE”, you allow the ARM EA to open averaging BUY orders. If you select the “FALSE” option, you prevent the ARM EA from opening averaging BUY orders.

Sell trades – If you select “TRUE”, you allow the ARM EA to open averaging orders of the SELL type. If you select the “FALSE” option, you forbid the ARM EA to open averaging orders of the SELL type.

AR Orders MagicNumber   – Specify the number that will be assigned to all open averaging orders of the ARM EA. Using this number, the EA can distinguish its own orders from orders opened by other EAs or opened manually. Therefore, this number should be individual for each individual adviser.

order comment – Specify a comment for averaging orders to be opened by the ARM EA. A locking order opened before the start of the recovery of losses will be opened with a different standard comment.

Spread Limit (0-not use) – Specify the maximum spread limit at which you allow the ARM EA to open orders. If you leave the default value equal to zero, then there is no limit and orders will be opened in no limits.

Font size – Specify the size of the text displayed on the chart. Applied size for monitors with medium resolution, if your monitor resolution is higher or lower, you can change this value both up and down. The minimum value is 1.



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